Digi Communications N.V. reports consolidated revenues of 1.2 billion euros, adjusted EBITDA of 430 million euros for the first nine months of 2023

Digi Communications N.V., one of the leading European telecommunications companies, listed on the Bucharest Stock Exchange, reports consolidated revenues (including revenues and other income) of EUR 433.7 million in the third quarter of 2023, a 13% increase compared to the same period of the previous year.Adjusted EBITDA increased by 19% compared to the result from Q3 2022, reaching EUR 150.4 million. Adjusted EBITDA excluding the impact of IFRS 16 increased 21% year-on-year, to EUR 129.3 million.

The solid performance in the third quarter, in line with management’s expectations, contributed to the results generated for the first nine months of the year. Consequently, the Group recorded in the first nine months of 2023 consolidated revenues of EUR 1,238.8 million, a 13% increase versus 9M 2022, adjusted EBITDA of EUR 430.3 million (+16% vs 9M 2022) and adjusted EBITDA excluding the IFRS 16 impact of EUR 367.9 million (+17% vs 9M 2022).

Serghei Bulgac, CEO of Digi Communications, stated: “The strong financial results generated by our Group in third quarter mirrored the success of our strategic initiatives. The remarkable evolution across all service categories in Romania and Spain is aligned with our projections for the year, showcasing our ability to execute our growth strategy with precision. The sustained financial performance is a direct result of a robust increase in customer base, driven by a substantial RGU increase in Romania and Spain, particularly in the mobile segment where we saw a 19% and 24% year-on-year growth, respectively. As we continue Digi’s geographical expansion across our existing markets, we remain committed to offering competitive and superior services to all our customers. Looking beyond 2023, we are pleased to be advancing with our entry into the Portuguese and Belgian markets, where we aim to replicate our affordable, high-quality service model, thereby ensuring our continued growth in the European telecom landscape.”

In Q3 2023, Digi continued to grow across its entire service portfolio, exceeding 23.2 million of revenue-generating contractual relationships (RGUs) across its three markets of activity – Romania, Spain, and Italy, representing a 15% year-on-year increase. The Group’s offerings include mobile and fixed-line telecommunication services, fixed internet and data, and Pay TV services. In Romania, Digi offers fixed telecommunication and entertainment services through a technologically advanced fiber optic network. The Group also operates a mobile network in Romania, which shares the backbone of the fixed fiber optic infrastructure. In Spain, Digi offers mobile services, broadband, and fixed-line telephony, while in Italy, the Group provides exclusively mobile services.

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The mobile segment is prominent as it produces the highest number of RGUs among all the Group’s service categories, contributing to 45% of total RGUs across all three markets. Continuing with the growth rate of previous quarters, the number of RGUs in this category reached 10.5 million, a 21% increase, covering mobile telephony clients across Romania, Spain, and Italy.

In Romania, the mobile services segment reached 5.6 million RGUs, an evolution of 19% compared to Q3 2022. Fixed mobile services registered an increase of 10%, compared to the same period of last year, up to 4.5 million RGUs, while the segment of Pay-TV services (cable and satellite) increased by 5% compared to the same period of last year, up to 5.6 million RGUs. Together with fixed-line telephony, the total number of RGUs in the Romanian market amounted to 16.7 million customers, a 10% increase.

Operations in Spain continued to perform well in the Q3 2023, with the number of users of fixed services, internet, and mobile telephony increasing 33% compared to the same period of the prior year, to 6.1 million RGUs. Mobile users increased by 24% to 4.5 million RGUs, while broadband users increased by 66% to 1.2 million.

In Italy, mobile users increased by 14%, reaching 409 thousand RGUs as of the end of Q3 2023.

The Group’s strategic initiatives in Portugal and Belgium set the stage for future expansion of Digi in these two markets. In Portugal, the subsidiary is actively laying the groundwork to commence commercial services in 2024. The preparations are sustained by a long-term partnership with Cellnex, a key player in the telecom infrastructure sector in this country.

In Belgium, Digi Communications Belgium N.V. and InSky N.V. established a foundation for future operations by signing in August 2023 a series of wholesale agreements with Proximus Plc, the leading telecom player in Belgium. These agreements will compliment the mobile spectrum package that was won in June 2022 by the joint venture.

The financial report as of September 30, 2023, of Digi Communications is available here.